Oct. 29, 2007 issue
Instead of scribbling a few last-minute checks between Thanksgiving and New Year’s, why not be a little bit more methodical about your charitable giving this year? That can make your donated dollars go further, and—in a year when the tax rules have changed—ensure that you get the tax deductions you’re entitled to.
First, choose where you’d like your donations to go. You can have a bigger impact (and a smaller stack of follow-up requests) if you give more money to fewer groups. Check them out at guidestar.org and charitablechoices.org to make sure the organizations you’re supporting are legit and give the bulk of their money to their mission.
Be careful to document your gifts properly. Starting with your 2007 tax return, you won’t be able to deduct cash donations unless you have a bank statement, canceled check or receipt from the charity that proves you gave what you say you did. If you’re planning to donate a car, you’ll get a bigger deduction if you give it to a worthy charity that intends to use it for transportation instead of selling it off. If you’re giving away clothes and household items, make sure they are in decent condition before you lay them on a nonprofit. Uncle Sam won’t give you a deduction for ruined or useless items. And let’s face it, your old junk isn’t going to help anyone anyway.